opinion of Value - EPI Fundcoml.epifund.com/files/asset30782-Broker Price Opinion-1.pdfnorth 17 72...

Marasol apartMents

MirasolBroker opinion of value

presented to lNr PartNers, iNCJohN MitChell, brett MaNN, aNd PJ horNik

June 2011

opinionof Value

TranswesTern

Jack hannumVice [email protected]

bret ZinnVice [email protected]

traNswesterN Broker opinion of Value

2 executiVe suMMary

Executive Summary

Transwestern is the right choice to market Mirasol Apartments

transwestern is pleased to provide lnr partners, inc with this proposal to provide strategic disposition services relating to Mirasol apartments. We sincerely appreciate this opportunity, and we are confident that the transwestern team offers you the requisite skills and experience necessary to excel in this assignment. our sales process, hands-on approach, and track record with similar assets will enable lnr partners, inc to achieve maximum sales pricing for this asset.

Valuation Summary

Probable Value (boV) suggested list PriCe

probable Value $3,740,000 suggested list price $4,250,000

price/unit $29,920 price/unit $34,000

price/square foot $43 price/square foot $48

cap rate (BoV proforma) 6.49% cap rate (Marketing proforma) 6.51%

cap rate (90-Day adjusted) 2.98% cap rate (90-Day adjusted) 2.78%

cap rate (t-12 adjusted) 5.81% cap rate (t-12 adjusted) 5.27%

transwestern believes Mirasol will sell between $3,740,000 ($29,920 per unit) and $4,250,000 ($34,000 per unit) in today’s market.

* adjusted cap rates are based on actual reported income less stabilized expenses.

Marasol apartMents

executiVe suMMary 3

Transwestern Comparable Transaction History

Jack Hannum and Bret Zinn are active in the arizona market with sales of similar class apartment communities to Mirasol apartments. the following is a summary of current and recent transactions for 2009-2011:

ProPerty uNits built PriCe Per uNit status seller

silktree 86 1980 $2,750,000 $31,977 non-refundable ocwen4815 e thomas rd (portfolio) May-2011phoenix, aZ 85008palmwood terrace 101 1977 $2,000,000 $19,802 non-refundable ocwen4917 e thomas rd (portfolio) May-2011phoenix, aZ 85008sun river Village 334 1981 unpriced n/a contract aiMco505 W Baseline rd May-2011tempe, aZtimbertree 387 1980 $11,975,000 $30,943 sold aiMco2800 W sahuaro Dr May-2011phoenix, aZ 85029santaluz 176 1986 $2,950,000 $16,761 sold cWcapital5650 s park ave apr-2011tucson, aZDesert sunrise 165 1985 $4,650,000 $28,182 sold ocwen17602 n cave creek rd nov-2010phoenix, aZnorth 17 72 1984 $1,499,850 $20,831 sold Wildwood capital 9601 n 17th ave sep-2010 (receiver)phoenix, aZMonterra 258 2001 $16,650,000 $64,534 sold aslan realty Group1333 n 24th st May-2010phoenix, aZcabrillo 224 1987 $12,600,000 $56,250 sold principal life 11620 n sahuaro Dr Jan-2010 (lender)scottsdale, aZnewport 204 1986 $8,200,000 $40,196 sold aiMco1333 n Dysart road Dec-2009avondale, aZcasa santa fe 264 1987 $16,000,000 $60,606 sold principal life 11105 n 115th st Dec-2009 (lender)scottsdale, aZcrossroads 316 1982 $9,850,000 $31,171 sold aiMco2222 W Beardsley rd nov-2009phoenix, aZWachovia portfolio 592 $40,500,000 $68,400 sold Wachoviaphoenix, Mesa and aug-2009Gilbert, aZ

TOTAL/AVERAGE 3,179 $129,624,850 $39,138


4 executiVe suMMary

S.W.O.T. Analysis

it is vital to fully understand an asset’s strengths, weaknesses, opportunities, and threats when assessing value and ultimately marketing the property. it is necessary to sell to the strengths and opportunities and minimize the weaknesses and threats, be they real or perceived.

the following is based on the transwestern team’s research regarding Mirasol, as well as its competition and the overall tucson apartment market:

STRENGTHS

n Desirable scottsdale address located less than one-half mile west of the loop-101 freeway, and just over two miles north of the loop-202 freeway.

n Great drive by exposure and a large marketing window along McDowell road, a major east-west thoroughfare experiencing traffic counts of ±39,000 vehicles daily. the property is also less than a minute’s drive east to pima road (north-south thoroughfare) which averages ±33,300 cars daily.

n Manageably sized asset – the number of units and total acquisition size will garner a larger pool of private capital buyers for the asset. additionally, the recent historical occupancy (at +90%) will allow investors the opportunity to place long-term financing on the asset while taking advantage of today’s low interest rates.

n Quality property with a value-add opportunity. While Mirasol is in overall good condition, investors will have the opportunity to upgrade the interiors/exteriors and increase rents as the strong scottsdale submarket continues to improve in the coming years.

WEAKNESSES

n While located in the city of scottsdale, Mirasol is situated in the southeast region of the city, which has a less desirable aesthetic appeal than other locations within scottsdale, such as the old town or northern kierland commons areas.

n there are ten competing properties comprising 2,060 units within a 2 mile radius of the community, with Mirasol being among the oldest of the supply. in addition, Mirasol is of a “motel-style” construction frontage with catwalks connecting the buildings, which may not appeal to some investors.

n Mirasol does not have the amenities offered by larger communities such as a community center, fitness center, or outdoor lounge areas.

OPPORTUNITIES

n Mirasol’s peak economic rents in 1Q08 were 27.3% higher than current 1Q11 economic rents, and have increased 19.4% since the bottom just one year ago when vacancy was at its highest in twenty months at 16% (see graph on page 5).

n With limited new apartment supply coming online over the next 2 to 3 years and the inability for people to qualify for home ownership, investors will have the opportunity to eliminate concessions and increase rents as both employment and population growth return to the market.

n the majority of multifamily buyers in the phoenix market are targeting distressed opportunities or lender owned properties similar to Mirasol. the very nature of the current property ownership will ensure a large number of qualified buyers.

n adding value to the property though continued interior and exterior capital infusion will help the

Marasol apartMents

executiVe suMMary 5

overall appeal of the property, taking advantage of its excellent exposure. a beautification strategy (utilizing existing mature landscaping), coupled with proper marketing and signage will greatly assist in the performance of the asset.

n Maricopa county assessed values established for 2010 were 59.1% higher than the 2012 assessed values that have been set. assuming 5% growth annually in the 2010 millage rate, the property tax expenses will be lessened by the property tax by $10,738 for 2010 (see page 15).

THREATS

n if a double-dip recession occurs, this could have a negative impact on investor underwriting of strong

apartment rental growth over the next 2 to 3 years, thus negatively impacting values.

n While interest rates are at historic lows, and have remained stable in recent months, continued increases in rates could result in an upward movement in cap rates.

n the increasing number of apartment foreclosures expected within the next few years may begin to saturate the market and limit aggressive asset valuations.

Q2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q1 2 3 4 Q12006 2007 2008 2009 2010 2011

$440

$490

$540

$590

$640

$740

$690

AVERAGE NET EFFECTIVE & ECONOMIC RENTSTrailing 20 Quarters

AVERAGE ECONOMIC RENTS AVERAGE NET EFFECTIVE RENTS

Net effeCtiVe reNts

peak low Current

$711 $518 $587

1Q08 4Q09 1Q11

eCoNoMiC reNts(Net less VaCaNCy)

peak low Current

$700 $460 $549

1Q08 1Q10 1Q11

peak economic rents in

1Q08 were 27.3% higher than

current 1Q11 economic rent.

economic rents have

increased 19.4% since the

bottom in 1Q10.


6 property oVerVieW

Property Overview

Mirasol is conveniently located in south scottsdale, a short distance from restaurants, shopping and major employers. scottsdale fashion square, tempe Marketplace and Mesa riverview are just minutes away. unit layouts include six different floorplan options ranging from studio, 1 bed 1 bath, 2 bed 1 bath, 2 bed 2 bath and 3 bed 2 bath. community amenities include a heated pool and spa, laundry facilities, security patrol, and BBQ areas.

Mirasol consists of masonry construction. the two story complex covers 4.00 acres and contains 8 individual buildings. all electrical, including heating and cooling is individually metered. Domestic hot water is centrally metered and provided by a boiler system. the individually metered ac units were added in 2005. site oVerView

location: 8750 e McDowell rd, scottsdale, aZ 85257units: 125 year Built: 1971rentable sf: 87,674 square feet Buildings: 8 site size: 4.00 net acresDensity: 31.3 units per acreparcel no: 131-49-087Jamenities: ceiling fans, disposal, walk-in closets in some,

BBQ areas, playground, security patrol, optional storage room, laundry facility, and heated swimming pool and spa.Metered: individually metered for electricity.

uNit Mix

total Market net eff

type units size sf rent per sf rent per sf

studio 1 310 310 $500 $1.61 $445 $1.44

1Bd/1Ba 44 550 24,200 $615 $1.12 $547 $1.00

1Bd/1Ba 6 590 3,540 $630 $1.07 $561 $0.95

2Bd/1Ba 48 780 37,440 $709 $0.91 $631 $0.81

2Bd/2Ba 24 830 19,920 $749 $0.90 $667 $0.80

3Bd/2Ba 2 1,132 2,264 $799 $0.71 $711 $0.63

Total/Avg 125 701 87,674 $676 0.96 $601 $0.86

Q1 2011 subMarket statistiCs

1s south sCottsdale

total number of projects: 27

total number of units: 6,475

percent of total phoenix: 2.73%

Vacancy rate: 5.79%

average gross rents: $858 / $0.96

average net rents: $763 / $0.85

Marasol apartMents

property oVerVieW 7

CAVE BUTTESRECREATION AREA

PROSPECTORPARK

USERY MOUNTAIN RECREATION AREA

REDMOUNTAIN

PARK

GENEAUTRYPARK

MCDOWELLMOUNTAINREGIONAL

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BLACKMOUNTAIN

SUMMITPARK

CAVE CREEKRECREATION AREA

REACH 11RECREATION

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PAPAGOPARK

ENCANTOPARK

CAVECREEKPARK

NORTHMOUNTAIN

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PHOENIXMOUNTAINS

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MOUNTAINVIEWPARK

WASHINGTONPARK

ESTEBANPARK

SOUTHMOUNTAIN PARK

SOUTHMOUNTAIN PARK

BUCKEYE HILLSRETIONAL PARK

DESERT WESTREGIONAL PARK

CONOCIDOPARK

ADOBE DAMRECREATION AREA

THUNDERBIRDPARK

BLACK CANYONSHOOTING RANGE

ESTRELLAMOUNTAIN PARK

WHITETANK MOUNTAINREGIONAL PARK

LOSTDUTCHMAN

STATEPARK

PARADISEVALLEYPARK

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CAMELBACK MOUNTAINECHO-CANYON

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LOOKOUTMOUNTAINPRESERVE

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CROSSROADSPARK

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GAINEYRANCH

GOLF CLUB

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ARIZONAGRAND RESORTGOLF COURSE

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SUN CITY RIVERVIEWGOLF COURSE

PALMBROOKCOUNTRY

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SUN CITY NORTHGOLF COURSE

SUN CITYSOUTH

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QUAILRUNGOLF

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RECREATION AREA

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MIRASOL


8 financial analysis

Probable Value MarketiNg ProforMa

probable Value $3,740,000 suggested list price $4,250,000

price/unit $29,920 price/unit $34,000

price/square foot $43 price/square foot $48

cap rate (BoV proforma) 6.49% cap rate (Marketing proforma) 6.51%

cap rate (90-Day adjusted) 2.98% cap rate (90-Day adjusted) 2.78%

cap rate (t-12 adjusted) 5.81% cap rate (t-12 adjusted) 5.27%

aCtual Versus ProforMa CoMParisoN

trailing 12 Months Bov proforMa Marketing proforMa

Gross potential income $920,489 $909,708 $909,708

Vacancy loss 16.5% (152,083) 9.0% (81,874) 8.0% (72,777)

concessions 7.2% (66,648) 11.0% (100,068) 10.0% (90,971)

Bad Debt/other losses 3.9% (35,824) 4.0% (36,388) 3.0% (27,291)

net rental income 72.3% 665,934 76.0% 691,378 79.0% 718,669

other income 687 85,852 687 85,852 687 85,852

Effective Gross Income $6,014 $751,786 $6,218 $777,230 $6,436 $804,521

Marketing and retention $242 $30,310 $242 $30,310 $242 $30,310

administration 245 30,590 245 30,590 245 30,590

apartment turnover 214 26,695 214 26,695 214 26,695

landscaping & security 161 20,080 161 20,080 161 20,080

repairs and Maintenance 368 46,042 368 46,042 368 46,042

payroll and Benefits 1,458 182,277 1,150 143,750 1,100 137,500

Controllable Expenses $2,688 ($335,994) $2,380 ($297,467) $2,330 ($291,217)

utilities 875 109,352 875 109,352 875 109,352

Management fees 247 30,901 249 31,089 257 32,181

insurance 151 18,820 160 20,000 150 18,750

real estate taxes 327 40,880 262 32,698 262 32,698

recurring capital 350 43,750 350 43,750 350 43,750

Total Expenses $4,638 ($579,697) $4,275 ($534,357) $4,224 ($527,948)

Net Operating Income $1,377 $172,089 $1,943 $242,874 $2,213 $276,573

* adjusted cap rates are based on the actual egr reported for the period, less proforma expenses.

Mirasol Financial Analysis

Marasol apartMents

financial analysis 9

BOV ANd MARKETING PROFORMA FINANCIAL NOTES

Gross Potential Income

BoV and Marketing proforma reflect the January 2011 market rents equating to $1,019,352

annually. Gross potential income also includes a loss to lease of 10.8%, or $109,644, which is

an adequate assumption given the calendar year 2010 loss to lease of $98,863.

Vacancy LossBoV and Marketing proforma reflect Vacancy loss of 9% and 8%, respectively. January

physical occupancy was 92.8%.

ConcessionsBoV and Marketing proforma reflect a concession of 11% and 10%, respectively. this is a

conservative assumption given the cy 2010 booked concessions of 7.2%.

Bad debt/Other LossesBoV and Marketing proforma reflect an average of 4% and 3% for Bad Debt and other rent

loss. this is consistent with cy 2010 other losses of 3.9%

Other Income BoV and Marketing proforma reflect the cy 2010 figure for other income.

Controllable Expenses

Marketing, administration, turnover, landscaping & security, repairs and Maintenance

all refelct the cy 2010 expense figures. payroll and Benefits were estimated at $1,150 and

$1,100 for BoV and Marketing proforma, repectively. this figure is consistent with other

properties of this size.

Utilities BoV and Marketing proforma reflect the cy 2010 figure for utilities.

Management FeesBoV and Marketing proforma reflect a 4% Management fee, which is consistent with the cy

2010 expense figure.

Insurance BoV and Marketing proforma have been estimated at $160 and $150 per unit respectively,

which is consistent with the cy 2010 figure of $151 per unit.

Real Estate Taxes

BoV and Marketing proforma reflect the 2011 real estate tax estimate which is based

on the current assessed values provided by Maricopa county and have been estimated

utilizing the 2010 tax rates with 5% growth. see the tax analysis within this proposal for

additional detail.

Recurring Capital estimated at $350 per unit for BoV and Marketing proforma.



Asset Pricing Model

Mirasol June 2011 Market Rentsunit desCription % Mix type units unit sf total sf per unit per sf Mo rent

studio 1% flat 1 310 310 $500 $1.61 $500

1Bd/1Ba 35% flat 44 550 24,200 615 1.12 27,060

1Bd/1Ba 5% flat 6 590 3,540 630 1.07 3,780

2Bd/1Ba 38% flat 48 780 37,440 709 0.91 34,032

2Bd/2Ba 19% flat 24 830 19,920 749 0.90 17,976

3Bd/2Ba 2% flat 2 1,132 2,264 799 0.71 1,598

Total/Average 125 701 87,674 $680 $0.97 $84,946

Scheduled Market Rents - Annualized $1,019,352

inCoMe/expenses per Jan-Jun 2010 per trailing 12 per Bov per Marketing

unit annualized unit Months unit proforMa unit proforMa

Annual Market Rents $1,019,352 $1,019,352 $1,019,352 $1,019,352 Gain (loss) to lease 10.05% (102,424) 9.70% (98,863) 10.76% (109,644) 10.76% (109,644)

Gross Potential Rent 916,928 920,489 909,708 909,708

Vacancy 15.03% ($137,784) 16.52% (152,083) 9.00% (81,874) 8.00% (72,777)

concessions 8.25% ($75,612) 7.24% (66,648) 11.00% (100,068) 10.00% (90,971)

other rent loss 4.76% (43,638) 3.89% (35,824) 4.00% (36,388) 3.00% (27,291)

Net Rental Income 72.0% 659,894 72.3% 665,934 76.0% 691,378 79.0% 718,669

other income 444 55,560 687 85,852 687 85,852 687 85,852

Effective Gross Income 5,724 $715,454 6,014 $751,786 6,218 $777,230 6,436 $804,521

Delta over 90-Day EGR 8.63% 12.45%

Delta over T-12 EGR 3.38% 7.01%

Monthly Revenue Average $59,621 $62,649 $64,769 $67,043

Operating Expenses

Marketing and retention 217 27,084 242 30,310 242 30,310 242 30,310

administration 285 35,592 245 30,590 245 30,590 245 30,590

apartment turnover 198 24,718 214 26,695 214 26,695 214 26,695

landscaping & security 167 20,934 161 20,080 161 20,080 161 20,080

repairs and Maintenance 433 54,134 368 46,042 368 46,042 368 46,042

payroll and Benefits 1,567 195,820 1,458 182,277 1,150 143,750 1,100 137,500

Controllable Expenses (2,866) (358,282) (2,688) (335,994) (2,380) (297,467) (2,330) (291,217)

utilities 921 115,106 875 109,352 875 109,352 875 109,352

Management fees 249 31,184 247 30,901 249 31,089 257 32,181

insurance 0 0 151 18,820 160 20,000 150 18,750

Operating Expense Subtotal (4,037) (504,572) (3,961) (495,067) (3,663) (457,908) (3,612) (451,500)

real estate taxes 280 34,976 327 40,880 262 32,698 262 32,698

recurring capital expenditures 350 43,750 350 43,750 350 43,750 350 43,750

Total Operating Expenses (4,666) (583,298) (4,638) (579,697) (4,275) (534,357) (4,224) (527,948)

Net Operating Income 1,057 $132,156 1,377 $172,089 1,943 $242,874 2,213 $276,573

debt Service (1,427) (178,377) (1,622) ($202,701)cash flow 516 $64,497 591 $73,872

Marasol apartMents


MarketiNg PriCe suMMary

price $4,250,000 cap rate (Mp) 6.51%price per unit $34,000 cap rate (90 Day adj)* 2.78%price per sf $48 cap rate (6 Mth adj)* 4.41%

cap rate (12 Mth adj)* 5.27%cap rate (12 Mth act) 4.05%

boV PriCe suMMary

price $3,740,000 cap rate (BoV) 6.49%price per unit $29,920 cap rate (90 Day adj)* 2.98%price per sf $43 cap rate (6 Mth adj)* 4.84%

cap rate (12 Mth adj)* 5.81%cap rate (12 Mth act) 4.60%

ProPerty suMMary data

# units 125 previous purchase price $5,878,000year Built 1971 price/unit $47,024occupancy as of 04/2011 92.8% price/sf $67

Date purchased 03/09/07current owner legacy Gold partnersprevious owner edward streit

gross reVeNue history

eCC oCC % Monthly annual

30 Days annualized 69% $48,352 $580,22560 Days annualized 70% $55,538 $666,45790 Days annualized 70% $53,832 $645,9856 Months annualized 72% $59,621 $715,455trailing 12 Months 72% $62,649 $751,787

ProPosed New Mortgage iNforMatioN

interest rate 5.50% amortization 30 yearsloan to Value 70% term 7 years

boV loaN suMMary MarketiNg loaN suMMary

loan amount $2,618,000 loan amount $2,975,000 Monthly payment ($14,865) Monthly payment ($16,892)loan constant 6.81% loan constant 6.81%total loan to Value 70.00% total loan to Value 70.00%Dscr 1.36 Dscr 1.36

CaP rate seNsitiVity (MarketiNg ProforMa)

Cap rate value value/unit value/sf

6.25% $4,430,000 $35,440 $516.50% $4,250,000 $34,000 $486.75% $4,100,000 $32,800 $47

CaP rate seNsitiVity (boV ProforMa)

Cap rate value value/unit value/sf

6.25% $3,890,000 $31,120 $446.50% $3,740,000 $29,920 $436.75% $3,600,000 $28,800 $41



12-Month Historical

T-12 MONTH 6 MONTHS 90 DAY 60 DAY 30 DAYJAN-10 FEB-10 MAR-10 APR-10 MAY-10 JUN-10 JUL-10 AUG-10 SEP-10 OcT-10 NOv-10 DEc-10 TOTAL ANNUALIZED ANNUALIZED ANNUALIZED ANNUALIZED

RENTAL INCOMEMarket rent $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $1,019,352 8,155 $1,019,352 8,155 $1,019,352 8,155 $1,019,352 8,155 $1,019,352 8,155

less: loss to lease (6,178) (6,067) (8,489) (8,463) (9,218) (9,236) (8,575) (8,776) (8,484) (7,596) (8,644) (9,137) (98,863) 9.7% (102,424) 10.0% (101,508) 10.0% (106,686) 10.5% (109,644) 10.8%

Gross potential rent 78,768 78,879 76,457 76,483 75,728 75,710 76,371 76,170 76,462 77,350 76,302 75,809 920,489 7,364 916,928 7,335 917,844 7,343 912,666 7,301 909,708 7,278

Vacancy (20,512) (18,304) (14,253) (12,329) (8,473) (9,320) (12,068) (9,788) (10,327) (15,308) (12,869) (8,532) (152,083) 16.5% (137,784) 15.0% (146,836) 16.0% (128,406) 14.1% (102,384) 11.3%

concessions (3,220) (5,599) (8,199) (3,706) (5,930) (2,188) (4,742) (7,742) (6,087) (2,887) (7,442) (8,906) (66,648) 7.2% (75,612) 8.2% (76,940) 8.4% (98,088) 10.7% (106,872) 11.7%

other rent loss (500) (4,136) (1,737) (2,009) (3,141) (2,482) (2,299) (3,446) (3,627) (4,557) (1,671) (6,219) (35,824) 3.9% (43,638) 4.8% (49,788) 5.4% (47,340) 5.2% (74,628) 8.2%

net rental income 54,536 50,840 52,268 58,439 58,184 61,720 57,262 55,194 56,421 54,598 54,320 52,152 665,934 5,327 659,894 5,279 644,280 5,154 638,832 5,111 625,824 5,007

Economic Occupancy 69% 64% 68% 76% 77% 82% 75% 72% 74% 71% 71% 69% 72% 72% 70% 70% 69%

other income 6,614 13,514 2,409 5,039 21,333 9,163 11,839 12,472 3,043 (4,178) 8,404 (3,800) 85,852 687 55,560 444 1,704 14 27,624 221 (45,600) (365)

Gross Revenues 61,151 64,355 54,678 63,479 79,518 70,884 69,102 67,667 59,465 50,421 62,725 48,353 751,787 6,014 715,455 5,724 645,985 5,168 666,457 5,332 580,225 4,642

OPERATING EXPENSES

Marketing and retention 5,155 2,871 2,316 1,725 2,380 2,321 1,629 1,957 2,045 2,584 3,146 2,181 30,310 242 27,084 217 31,644 253 31,962 256 26,172 209

administration 2,518 2,615 2,182 1,424 1,606 2,449 1,445 2,704 3,794 2,238 5,436 2,179 30,590 245 35,592 285 39,412 315 45,690 366 26,148 209

apartment turnover 1,780 2,070 4,665 2,808 1,753 1,260 3,593 1,856 1,421 1,971 1,900 1,618 26,695 214 24,718 198 21,956 176 21,108 169 19,416 155

landscaping & security 2,087 1,140 1,215 1,247 2,057 1,867 1,442 1,294 1,131 3,828 1,471 1,301 20,080 161 20,934 167 26,400 211 16,632 133 15,612 125

repairs and Maintenance 1,909 2,979 4,811 3,206 3,185 2,885 7,089 2,955 6,999 2,653 4,565 2,806 46,042 368 54,134 433 40,096 321 44,226 354 33,672 269

payroll and Benefits 13,114 12,962 15,549 13,579 16,270 12,893 20,513 16,160 14,918 13,092 13,296 19,931 182,277 1,458 195,820 1,567 185,276 1,482 199,362 1,595 239,172 1,913

Controllable Exp Subtotal 26,563 24,637 30,738 23,989 27,251 23,675 35,711 26,926 30,308 26,366 29,814 30,016 335,994 2,688 358,282 2,866 344,784 2,758 358,980 2,872 360,192 2,882

utilities 6,934 8,820 10,423 8,644 8,255 8,723 10,256 10,687 9,056 9,545 8,836 9,173 109,352 875 115,106 921 110,216 882 108,054 864 110,076 881

Management fees 2,597 2,286 2,503 2,697 2,376 2,850 2,756 2,837 2,295 3,053 2,370 2,281 30,901 247 31,184 249 30,816 247 27,906 223 27,372 219

insurance 0 0 0 18,820 0 0 0 0 0 0 0 0 18,820 151 0 0 0 0 0 0 0 0

operating expenses 36,094 35,743 43,664 54,150 37,882 35,248 48,723 40,450 41,659 38,964 41,020 41,470 495,067 3,961 504,572 4,037 485,816 3,887 494,940 3,960 497,640 3,981

real estate taxes 0 0 23,392 0 0 0 0 0 0 17,488 0 0 40,880 327 34,976 280 69,952 560 0 0 0 0

recurring capital expenditures 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 43,750 350 43,750 350 43,750 350 43,750 350 43,750 350

Total Expenses 39,740 39,389 70,702 57,796 41,528 38,894 52,369 44,096 45,305 60,098 44,666 45,116 579,697 4,638 583,298 4,666 599,518 4,796 538,690 4,310 541,390 4,331

Net Operating Income 21,411 24,966 (16,024) 5,683 37,990 31,990 16,733 23,571 14,160 (9,677) 18,059 3,237 172,090 1,377 132,157 1,057 46,467 372 127,767 1,022 38,835 311

Marasol apartMents


T-12 MONTH 6 MONTHS 90 DAY 60 DAY 30 DAYJAN-10 FEB-10 MAR-10 APR-10 MAY-10 JUN-10 JUL-10 AUG-10 SEP-10 OcT-10 NOv-10 DEc-10 TOTAL ANNUALIZED ANNUALIZED ANNUALIZED ANNUALIZED

RENTAL INCOMEMarket rent $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $84,946 $1,019,352 8,155 $1,019,352 8,155 $1,019,352 8,155 $1,019,352 8,155 $1,019,352 8,155

less: loss to lease (6,178) (6,067) (8,489) (8,463) (9,218) (9,236) (8,575) (8,776) (8,484) (7,596) (8,644) (9,137) (98,863) 9.7% (102,424) 10.0% (101,508) 10.0% (106,686) 10.5% (109,644) 10.8%

Gross potential rent 78,768 78,879 76,457 76,483 75,728 75,710 76,371 76,170 76,462 77,350 76,302 75,809 920,489 7,364 916,928 7,335 917,844 7,343 912,666 7,301 909,708 7,278

Vacancy (20,512) (18,304) (14,253) (12,329) (8,473) (9,320) (12,068) (9,788) (10,327) (15,308) (12,869) (8,532) (152,083) 16.5% (137,784) 15.0% (146,836) 16.0% (128,406) 14.1% (102,384) 11.3%

concessions (3,220) (5,599) (8,199) (3,706) (5,930) (2,188) (4,742) (7,742) (6,087) (2,887) (7,442) (8,906) (66,648) 7.2% (75,612) 8.2% (76,940) 8.4% (98,088) 10.7% (106,872) 11.7%

other rent loss (500) (4,136) (1,737) (2,009) (3,141) (2,482) (2,299) (3,446) (3,627) (4,557) (1,671) (6,219) (35,824) 3.9% (43,638) 4.8% (49,788) 5.4% (47,340) 5.2% (74,628) 8.2%

net rental income 54,536 50,840 52,268 58,439 58,184 61,720 57,262 55,194 56,421 54,598 54,320 52,152 665,934 5,327 659,894 5,279 644,280 5,154 638,832 5,111 625,824 5,007

Economic Occupancy 69% 64% 68% 76% 77% 82% 75% 72% 74% 71% 71% 69% 72% 72% 70% 70% 69%

other income 6,614 13,514 2,409 5,039 21,333 9,163 11,839 12,472 3,043 (4,178) 8,404 (3,800) 85,852 687 55,560 444 1,704 14 27,624 221 (45,600) (365)

Gross Revenues 61,151 64,355 54,678 63,479 79,518 70,884 69,102 67,667 59,465 50,421 62,725 48,353 751,787 6,014 715,455 5,724 645,985 5,168 666,457 5,332 580,225 4,642

OPERATING EXPENSES

Marketing and retention 5,155 2,871 2,316 1,725 2,380 2,321 1,629 1,957 2,045 2,584 3,146 2,181 30,310 242 27,084 217 31,644 253 31,962 256 26,172 209

administration 2,518 2,615 2,182 1,424 1,606 2,449 1,445 2,704 3,794 2,238 5,436 2,179 30,590 245 35,592 285 39,412 315 45,690 366 26,148 209

apartment turnover 1,780 2,070 4,665 2,808 1,753 1,260 3,593 1,856 1,421 1,971 1,900 1,618 26,695 214 24,718 198 21,956 176 21,108 169 19,416 155

landscaping & security 2,087 1,140 1,215 1,247 2,057 1,867 1,442 1,294 1,131 3,828 1,471 1,301 20,080 161 20,934 167 26,400 211 16,632 133 15,612 125

repairs and Maintenance 1,909 2,979 4,811 3,206 3,185 2,885 7,089 2,955 6,999 2,653 4,565 2,806 46,042 368 54,134 433 40,096 321 44,226 354 33,672 269

payroll and Benefits 13,114 12,962 15,549 13,579 16,270 12,893 20,513 16,160 14,918 13,092 13,296 19,931 182,277 1,458 195,820 1,567 185,276 1,482 199,362 1,595 239,172 1,913

Controllable Exp Subtotal 26,563 24,637 30,738 23,989 27,251 23,675 35,711 26,926 30,308 26,366 29,814 30,016 335,994 2,688 358,282 2,866 344,784 2,758 358,980 2,872 360,192 2,882

utilities 6,934 8,820 10,423 8,644 8,255 8,723 10,256 10,687 9,056 9,545 8,836 9,173 109,352 875 115,106 921 110,216 882 108,054 864 110,076 881

Management fees 2,597 2,286 2,503 2,697 2,376 2,850 2,756 2,837 2,295 3,053 2,370 2,281 30,901 247 31,184 249 30,816 247 27,906 223 27,372 219

insurance 0 0 0 18,820 0 0 0 0 0 0 0 0 18,820 151 0 0 0 0 0 0 0 0

operating expenses 36,094 35,743 43,664 54,150 37,882 35,248 48,723 40,450 41,659 38,964 41,020 41,470 495,067 3,961 504,572 4,037 485,816 3,887 494,940 3,960 497,640 3,981

real estate taxes 0 0 23,392 0 0 0 0 0 0 17,488 0 0 40,880 327 34,976 280 69,952 560 0 0 0 0

recurring capital expenditures 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 3,646 43,750 350 43,750 350 43,750 350 43,750 350 43,750 350

Total Expenses 39,740 39,389 70,702 57,796 41,528 38,894 52,369 44,096 45,305 60,098 44,666 45,116 579,697 4,638 583,298 4,666 599,518 4,796 538,690 4,310 541,390 4,331

Net Operating Income 21,411 24,966 (16,024) 5,683 37,990 31,990 16,733 23,571 14,160 (9,677) 18,059 3,237 172,090 1,377 132,157 1,057 46,467 372 127,767 1,022 38,835 311



Revenue History

JAN FEB MAR APR MAY JUN JUL

cy 2010 $61,150 $64,354 $54,677 $63,478 $79,517 $70,883 $69,101

Marketing proforma $67,043 $67,043 $67,043 $67,043 $67,043 $67,043 $67,043 BoV proforma $64,769 $64,769 $64,769 $64,769 $64,769 $64,769 $64,769 trailing-12 (straight line) $62,649 $62,649 $62,649 $62,649 $62,649 $62,649 $62,649

AUG SEP OCT NOV dEC TOTAL ANNUALIZEd

cy 2010 $67,666 $59,464 $50,420 $62,724 $48,352 $751,786

Marketing proforma $67,043 $67,043 $67,043 $67,043 $67,043 $804,521 BoV proforma $64,769 $64,769 $64,769 $64,769 $64,769 $777,230 trailing-12 (straight line) $62,649 $62,649 $62,649 $62,649 $62,649 $751,787

GROSS REVENUE HISTORY

Trailing 12BOV Proforma CY 2010Marketing Proforma

1 2 3 4 5 6 7 8 9 10 11 12

$50,000

$55,000

$60,000

$65,000

$70,000

$75,000

$80,000

$85,000

$45,000

Marasol apartMents


Real Estate Tax Analysis

2010 real estate tax suMMary

liMited assessed liMited Cash full assessed full Cash total tax

parCel id Cash value value (10%) tax rate Cash value value (10%) tax rate real estate

131-49-087J $4,669,000 $466,900 0.049851 $4,669,000 $466,900 0.025060 $34,976

2010 Total $4,669,000 $466,900 0.049851 $4,669,000 $466,900 0.025060 $34,976

2011 real estate tax estiMate*liMited assessed liMited Cash full assessed full Cash total tax


131-49-087J $4,157,100 $415,710 0.052344 $4,157,100 $415,710 0.026313 $32,698

2011 Total $4,157,100 $415,710 0.052344 $4,157,100 $415,710 0.026313 $32,698

* the 2011 real estate tax estimate reflects the current assessed values provided by Maricopa County and have been estimated utilizing the 2010 tax rates with 5% growth.

2012 real estate tax estiMate*

liMited assessed liMited Cash full assessed full Cash total tax


131-49-087J $2,934,800 $293,480 0.054961 $2,934,800 $293,480 0.027629 $24,238

2012 Total $2,934,800 $293,480 0.054961 $2,934,800 $293,480 0.027629 $24,238

* the 2012 real estate tax estimate reflects the current assessed values provided by Maricopa County and have been estimated utilizing the 2011 (est) tax rates with 5% growth.


16 Market oVerVieW

Market Overview

1

2

14

Van Buren Street

BaSeline road

phoenix

Sky harBorinternational

airport

32

nd

Str

ee

t

24

th S

tre

et

Mirasol is a 125-unit apartment community located in

scottsdale, arizona. the Garden style community is situated

in a convenient location just west of loop-101, close to the

beautiful phoenix Mountain preserves, numerous shopping

and dining venues and golf destinations.

situated just south of old town scottsdale and offering spectacular views of the phoenix Mountain preserve, this property is well positioned to serve scottsdale, tempe and Mesa.

THE FOLLOWING ARE EXAMPLES OF MULTIFAMILY dEMANd PERTINENT TO MIRASOL

APARTMENTS:

1 Jp Morgan campus 10 tempe Marketplace

2 arizona Biltmore 11 arizona state university

3 camelback Mountain/echo canyon park 12 arizona Mills Mall

4 scottsdale pavillions 13 south Mountain recreation park

5 scottsdale community college 14 phoenix sky Harbor airport

6 Biltmore fashion park 15 Banner Desert Medical center

7 Botanical Gardens 16 Mesa community college

8 phoenix Zoo 17 fiesta Mall

9 Mesa riverview 18 asu skysong innovation center

PRIVATE SECTOR dEMANd

n scottsdale: this city one of the most distinctive sections of the Valley, and is considered to be the focal point of elegant and fashionable living in the phoenix Metro area. this is evidenced by numerous art studios, the Galleria corporate center, scottsdale osborn Healthcare center, scottsdale Waterfront, scottsdale stadium, the fifth avenue shops, and the Westcor scottsdale fashion square Mall; all of which are less than fifteen minutes north of Mirasol.

ntempe / arizona state university: the city of tempe and the 60,000+ students of asu are only minutes away via the loop-101 freeway. the city also plays host to a healthy corporate environment which includes the headquarters of u.s. airways, and the smith Barney anchored hayden ferry lakeside building.

Marasol apartMents

Market oVerVieW 17

3

4

56

8

9

7

10

11

12

13

MIRASOL

lincoln driVe

camelBack road

thomaS road

Van Buren Street

uniVerSity driVe

BaSeline road

Broadway road

mcdowell road

ScottSdale

meSa

GilBert

tempe

ScottSdalecommunity

colleGe

arizonaState

uniVerSity

Sky harBorinternational

airport

Salt riVerpima

indianreSerVationh

ay

de

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oa

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dr

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44

th S

tre

et

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ttSd

ale

ra

od

15 1716

18

101

101

202

10

60


18 Market oVerVieW

nMesa: the phoenix Metro area’s second largest city, offers a progressive business climate, educational excellence and a skilled labor force. recently identified as america’s largest “boomburb” by the fannie Mae foundation, Mesa has surpassed Miami, fl; pittsburgh, pa; st. louis, Mo; and Wichita, ks to become the 42nd largest city in the nation with a population of over 450,000.

nGilbert: With over 180,000 people, the city boasts an ample supply of affluent, family oriented neighborhoods, and an unprecedented level of economic growth in and around the santan freeway corridor. this growth is fueled by a high concentration of wealthy and well educated residents. at $68,032 the median household income for Gilbert is 53 percent greater than the phoenix Metro area. in addition, one in three residents hold a bachelors degree or higher, compared to only one in four people Valley wide.

nchandler: the city of chandler offers an abundance of opportunity. the city has experienced population growth of educated, affluent residents, and plays host to corporate giants such as intel, Wells fargo, countrywide, and Verizon. the southeast Valley, including chandler, Mesa, and Gilbert is projected to account for over 55% of the population growth and 58% of the job growth in the phoenix Metro area over the next 20 years.

TRANSPORTATION

nthis property enjoys superb visibility from McDowell road, which experiences an average traffic volume of more than ±39,000 vehicles per day, and pima road with ±33,300 cars per day.

nthe orientation of loop 101 and loop 202 in relation to Mirasol provides the property with direct access routes to the east valley cities of tempe, gilbert, and Chandler. loop 101 is less than a half-mile east and access to loop 202 is five miles south via loop 101 or pima road.

HOSPITALS

nthe property has several health care options including scottsdale Healthcare osborn, tempe st luke’s, Banner Gateway Medical center, and scottsdale Healthcare shea.

RETAIL

in addition to 1.8 Million square foot fashion square Mall in scottsdale, there are several large regional malls in close proximity to the property. Most notably are tempe Marketplace, Mesa riverview, arizona Mills Mall, and fiesta Mall.

n tempe Marketplace is located approximately three miles south of Mirasol. this development contains 1.3 million square feet of retail, shops and restaurants. tenants

Marasol apartMents

Market oVerVieW 19

include a Harkins 20-screen multiplex theater, Barnes & noble, Jcpenney, Gap, Best Buy, old navy, G by Guess, and target.

n Mesa riverview is an open-air shopping center, comprised of approximately 1.3 million square feet of retail stores, theaters, shops and theme-style restaurants. Major Department stores at this location includes Wal-Mart, the Home Depot, arizona’s only Bass pro shops, 24 Hour fitness, Bed Bath & Beyond, cinemark theatre, Jo-ann fabrics, and the sports authority.

n fiesta Mall is located in Mesa just off of us-60 at alma school road. the 1.3 Million square foot center is the home of more than 135 stores and is anchored by Dillard’s, Macy’s, and robinsons-May.

narizona Mills is a 1.2 Million square foot market-dominant retail and entertainment center located at the us-60 and i-10 interchange. it features 16 anchors and 175 specialty retailers, as well as a diverse selection of restaurants and casual dining options.

EdUCATIONAL INSTITUTIONS

nthe property has several higher educational options within a 5-mile radius including arizona state university (70,440 students), scottsdale community college (10,000 students), and Mesa community college (23,900 students).

RECREATION ANd ENTERTAINMENT

nold town scottsdale is a special place and it has been revived as the “hip” place to be in scottsdale. this part of town offers some of the finest galleries, specialty retail, cultural attractions, dining establishments and entertainment venues in the Valley of the sun.

nthe asu scottsdale innovation center, skysong located less than two miles west on McDowell road, is a mixed-use project, eventually consisting of 1,200,000 square feet (111,000 m2) of office, research and retail space, and a hotel/conference center at full build-out. in addition to the commercial space, skysong will include multi-family residential units. currently, two 4-story buildings, each approximately 150,000 square feet (14,000 m2), frame the eastern half of the east-west boulevard intersecting the center. the center has abundant and redundant power and robust bandwidth capabilities to integrate state-of-the-art digital infrastructure into flexible office and research space.

nthe location of the property affords it a number of choices with regard to entertainment venues, cultural events, and outdoor recreation activities. tempe town lake, the new tempe Marketplace, Diablo stadium (sun Devil stadium) and Mill avenue provides a growing entertainment corridor and social center.

n south Mountain park is the largest city park in the world. at over 17,000 acres it covers the entire southern portion of phoenix. Visitors to the mountain preserve enjoy activities such as trail rides, hiking, and mountain biking.


20 Market oVerVieW

Sales Comparables

naMe Built units total sf status list priCe priCe/unit priCe/sf

s Mirasol 1971 125 87,674 BoV $4,250,000 $34,000 $48.48

8750 e McDowell rd

scottsdale, aZ 85257

naMe Built units total sf sale date sale priCe priCe/unit priCe/sf

1 Villages at Mcclintock 1971 181 143,567 apr-2011 $6,400,000 $35,359 $44.58

1701 e Don carlos ave

tempe, aZ 85281

2 sun crest 1985 94 84,996 aug-2010 $3,150,000 $33,511 $37.06

111 n Mesa Dr

Mesa, aZ 85201

3 university crossroads 1963 148 107,834 oct-2010 $4,800,000 $32,432 $44.51

1010 e orange st

tempe, aZ 85281

4 university crossing 1968 150 116,800 Jul-2010 $4,800,000 $32,000 $41.10

950 s terrace rd

tempe, aZ 85281

5 papago Vista 1986 136 89,368 Jun-2010 $4,325,000 $31,801 $48.40

5312 e taylor st

phoenix, aZ 85008

6 Valencia crossing 1984 396 263,229 nov-2010 $11,825,000 $29,861 $44.92

111 n Gilbert rd

Mesa, aZ 85213

7 Monterey Village 1983 252 168,340 Jan-2011 $7,400,000 $29,365 $43.96

4707 e McDowell rd

phoenix, aZ 85008

8 aspen ridge 1972 96 88,000 apr-2011 $2,208,000 $23,000 $25.09

820 e Brown rd

Mesa, aZ 85203

total/average $7,133,780 $30,274 $42.53

Marasol apartMents

Market oVerVieW 21


PROSPECTORPARK


REDMOUNTAIN

PARK

GENEAUTRYPARK


PARK

BLACKMOUNTAIN

SUMMITPARK


REACH 11RECREATION

AREA

PAPAGOPARK

ENCANTOPARK

CAVECREEKPARK

NORTHMOUNTAIN

PARK

PHOENIXMOUNTAINS

PRESERVE

MOUNTAINVIEWPARK

WASHINGTONPARK

ESTEBANPARK

SOUTHMOUNTAIN PARK

SOUTHMOUNTAIN PARK



CONOCIDOPARK


THUNDERBIRDPARK




LOSTDUTCHMAN

STATEPARK

PARADISEVALLEYPARK

SERENOPARK


RECREATION AREA


SUENOPARK


PARK

CROSSROADSPARK

FREESTONEPARK

WATERPARK

HARMONYPARK

REEDPARK

HERITAGEPARK

SHERWOODPARK

HOHOKAMPARK


MONUMENT

NUEVEPARK

CIRCLE-KPARK

DESERTFOOTHILLS

PARK

CACTUSPARK

CORTEZPARK

EL OSOPARK


MONUMENT


MONUMENT

RIO SALADOPARK

MOERPARK

KIWANASPARK

SWEETWATERPARK

ROADRUNNER

PARK

SWEETWATERPARK

BUFFALORIDGEPARK

GRANADAPARK

LOSOLIVOS

PARK

LAKEPLEASANT PARK

HORSEMANSPARK

HORIZONPARK

CESARCHAVEZ PARK

SAGUARORANCHPARK

DEERVALLEYPARK

MCCORMICKPARK

GAINEYRANCH

GOLF CLUB

MCCORMICRANCH

GOLF CLUB

SILVERRADOGOLF CLUB

VILLAMONTEREY

GOLFCOURSE

CONTINENTALGOLF

COURSE

CORONADOGOLF

COURSE

RIOSALADO

GOLFCOURSE

KARSTENGOLF COURSE




CLUB

TALKINGSTICK

GOLF CLUB

PAPAGOMUNICIPAL

GOLFCOURSE

DESERTTRAILSGOLF

COURSE

TRAILRIDGEGOLF

COURSE

GRANDVIEWGOLF

COURSE

ECHO MESAGOLF

COURSEHILLCREST

GOLFCOURSE

BRIARWOODCOUNTRY

CLUB

STARDUSTGOLF

COURSE

IRONWOODGOLF

COURSE

AUGUSTARANCH

GOLF CLUB





TOKASTICKSGOLF

COURSE

SUNLANDVILLAGE

EASTGOLF

COURSE

ARIZONAGOLF

RESORT

LEISUREWORLD

COUNTRYCLUB

SUPERSTITIONSPRINGS

GOLF CLUB

FOUNTAINOF THE SUN

GOLF COURSE



RED MOUNTAINRANCH

COUNTRY CLUB


SUNLANDVILLAGE

GOLFCLUB

ALTAMESA

COUNTRYCLUB


LOGBOWGOLF CLUB

WESTERNSKIESGOLF

COURSE

GOLF CLUBAT EAGLE

MOUNTAIN

DESERT CANYON

GOLF CLUB

SUNRIDGECANYON

GOLF CLUB


RENEGADEGOLF COURSE

THEBOULDERS


RANCHOMANANA

GOLF CLUB


DOVE VALLEYRANCH

GOLF CLUB



TROONGOLF AND

COUNTRY CLUB


ESTANCIACLUB


PINNACLEPEAK

COUNTRYCLUB

GRAYHAWK GOLF CLUB


ANCALACOUNRTY

CLUB

TPC STADIUMCOURSE

TPC DESERTCOURSE


COUNTRY CLUB

MESACOUNTRY

CLUB

ROYALPALMSGOLF

COURSE


DOBSONRANCHGOLF


KENMCDONALD

GOLFCOURSE

SANMARCOSRESORT

OCOTILLOGOLF

RESORT

OAKWOODGOLF COURSE

PALOVERDE

COUNTRYCLUB

SUN LAKESCOUNTRY

CLUB


KIERLANDGOLFCLUB

ORANGETREEGOLF

RESORT


CAMELBACKGOLF CLUB

PARADISEVALLEY

COUNTRYCLUB

PHOENICIANGOLF CLUB

ARIZONACOUNTRY

CLUB

ARIZONABILTMORE

GOLFCOURSE

MOONVALLEY

COUNTRYCLUB


ELCAROGOLFCLUB

PHOENIXCOUNTRY

CLUB



FOOTHILLSGOLF CLUB

MARYVALEGOLF

COURSE


LEGANDS ATARROWHEAD

GOLFCOURSE

ARROWHEADCOUNTRY

CLUB

VISTASCLUB AT

WESTBROOKVILLAGE

WESTBROOKVILLAGE

GOLF COURSE

UNIONHILLS

COUNTRYCLUB

WILLOWCREEKGOLF

COURSE


PALMBROOKCOUNTRY

CLUB



SUN CITYSOUTH

GOLF COURSE

QUAILRUNGOLF

COURSE

SUNCITY

COUNTRYCLUB

COUNTRYMEADOWS

GOLFCOURSE

VILLADE PAZGOLF

COURSE

WIGWAMGOLF AND

COUNTRY CLUB




CLUB

COYOTELAKESGOLF

COURSE


DESERTSPRINGS

GOLFCLUB

PEBBLEBROOKGOLF

COURSE

SUNVILLAGEGOLF

COURSE

ARIZONATRADITIONS

GOLFCOURSE

HAPPYTRAILSGOLFCLUB

ROLLINGHILLS GOLF

COURSE


AT WESTWORLD

TONTOVERDEGOLF

COURSE


PAVILLIONLAKESGOLF

COURSE

CYPRESSGOLF

COURSE

GREENFIELDLAKESGOLF

COURSE

AHWATUKEECOUNTRY

CLUB

VISTALGOLF CLUB




POWER RANCH


WHIRLWINDGOLF CLUB


MOUNTAIN


CAVECREEKGOLF

COURSE

ENCANTOGOLF

COURSE

AGUILA GOLFCOURSE


BELLAIRGOLF

COURSE

FALCONGOLF

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LOSCABALLEROS

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WICKENBURGCOUNTRY

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GLENLAKESGOLF

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SALT RIVERINDIAN

RESERVATION







143

153101

101

202

202

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17

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101

101

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74

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303

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85

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347

347

87

87

87

587

188

188

188

87

87

87

79

79

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RD


W HAPPY VALLEY RD

N 2

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N N

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W INDIAN SCHOOL RD

W CAMELBACK RD

W THOMAS RD

E CAMELBACK RD

W VAN BUREN ST

W YUMA RD

W INDIAN SCHOOL RD

E THOMAS RD

N BEELINE HWY

W BELOAT RD

W SOUTHERN AVE


N P

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W VAN BUREN ST

S P

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W GUADALUPE RD

W ELLIOT RD

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W UNION HILLS DR

W BEARDSLEY RD

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W JOMAX RD

W PATTON RD

W JOMAX RD

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W ANTHEM

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N 7

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W BUCKEYE RD

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N H

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E GERMANN RD

W OCOTILLO RD

W GERMANN RD

W ELLIOT RD

W WILLIAMS FIELD RD

W RIGGS RD

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N P

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S L

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E BELLA VISTA RD

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N 1

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PAPAGOPARK

PHOENIXMOUNTAINS

PRESERVE

SOUTHMOUNTAIN PARK


RECREATION AREA

ASUWEST

SCOTTSDALECOMMUNITY

COLLEGE


RED MTN

PARADISEVALLEY

COMMUNITYCOLLEGE


GLENDALECOMMUNITY

COLLEGE

ESTRELLAMOUNTAIN

COMMUNITYCOLLEGE

GRANDCANYON

UNIVERSITY

PHOENIXCOLLEGE

SOUTH MTNCOMMUNITY

COLLEGE

ARIZONASTATE

UNIVERSITY

GATEWAYCOMMUNITY

COLLEGE


OF GLOBAL MGMT

BARTLETTRESERVOIR

LAKEPLEASANT

CANYONLAKE

APACHELAKE

THEODOREROOSEVELT

LAKE

SAGUARORESERVOIR

LUKEAIR FORCE


AIRPORT

CHANDLERMUNICIPAL

AIRPORT


FALCONFIELD

AIRPORT

SCOTTSDALEAIRPORT

PHOENIXDEER VALLEY

AIRPORT

PHOENIXSKY HARBOR

INT’L AIRPORT

PHOENIXGOODYEAR

AIRPORT

STELLARAIRPARK

BUCKEYEMUNICIPAL

AIRPORT

PEORIA

GLENDALE

SUN CITY WEST

SUNCITY

WADDELL

PHOENIX

LAVEEN

AVONDALE

BUCKEYE

PALOVERDE

CAVECREEK

CAREFREE

ANTHEM

PARADISEVALLEY

SCOTTSDALE

TEMPE

MESA

GILBERT

CHANDLER

HIGLEY

APACHEJUNCTION

SAN TANVALLEY

SUNLAKES

QUEENCREEK

NEWRIVER

FOUNTAINHILLS

MIRASOL

31

2

4

7

5

6

8


22 Market oVerVieW

Rent Comparables

suBJeCt property total Market net effnaMe Built type units size sf rent per sf rent per sf

s Mirasol 1971 s/1 Bath 1 310 310 $500 $1.61 $445 $1.448750 e McDowell rd 1 B/1 B 44 550 24,200 $615 $1.12 $547 $1.00scottsdale, aZ 85257 1 B/1 B 6 590 3,540 $630 $1.07 $561 $0.95

2 B/1 B 48 780 37,440 $709 $0.91 $631 $0.812 B/2 B 24 830 19,920 $749 $0.90 $667 $0.803 B/2 B 2 1132 2,264 $799 $0.71 $711 $0.63

Total/Average 125 701 87,674 $676 0.96 $601 $0.86

CoMparaBle properties total Market net effnaMe Built type units size sf rent per sf rent per sf

1 scottsdale springs 1979 1 B/1 B 352 680 239,360 $770 $1.13 $575 $0.857791 e osborn rd 2 B/1 B 128 816 104,448 $855 $1.05 $665 $0.81scottsdale, aZ 85251 2 B/2 B 136 910 123,760 $915 $1.01 $725 $0.80

3 B/2 B 16 1194 19,104 $1,205 $1.01 $1,205 $1.013 B/2 B 12 1,444 17,328 $1,315 $0.91 $990 $0.69

Total/Average 644 783 504,000 $838 $1.07 $648 $0.832 scottsdale Belle rive 1985 s/1 B 12 450 5,400 $625 $1.39 $574 $1.28

8550 e McDowell rd 1 B/1 B 45 750 33,750 $745 $0.99 $685 $0.91scottsdale, aZ 85257 2 B/1 B 27 850 22,950 $805 $0.95 $730 $0.86

2 B/2 B 76 1000 76,000 $835 $0.84 $728 $0.73Total/Average 160 863 138,100 $789 $0.91 $705 $0.82

3 scottsdale Gateway 1965 s/1 B 56 308 17,248 $578 $1.88 $578 $1.88i & ii 1972 s/1 B 77 411 31,647 $581 $1.41 $581 $1.412100 n scottsdale rd 1 B/1 B 104 458 47,632 $639 $1.40 $639 $1.40tempe, aZ 85281 1 B/1 B 104 605 62,920 $699 $1.16 $699 $1.16

1 B/1 B/Den 28 750 21,000 $764 $1.02 $764 $1.022 B/1 B 64 750 48,000 $764 $1.02 $764 $1.022 B/1 B 123 850 104,550 $764 $0.90 $764 $0.902 B/1.5 B 18 1,223 22,014 $957 $0.78 $957 $0.782 B/2 B 36 911 32,796 $864 $0.95 $864 $0.95

Total/Average 610 636 387,807 $703 $1.11 $703 $1.114 summertree 1963 s/1 B 21 475 9,975 $529 $1.11 $504 $1.06

1923 n 70th st 1 B/1 B 72 496 35,712 $599 $1.21 $554 $1.12scottsdale, aZ 85257 1 B/1 B 20 610 12,200 $605 $0.99 $580 $0.95

2 B/2 B 80 830 66,400 $693 $0.83 $668 $0.80Total/Average 193 644 124,287 $631 $0.98 $599 $0.93

5 irvine park 1983 1 B/1 B 40 704 28,160 $685 $0.97 $625 $0.898521 e McDowell rd 2 B/2 B 80 984 78,720 $795 $0.81 $725 $0.74scottsdale, aZ 85257Total/Average 120 891 106,880 $758 $0.85 $692 $0.78

Marasol apartMents

Market oVerVieW 23


PROSPECTORPARK


REDMOUNTAIN

PARK

GENEAUTRYPARK


PARK

BLACKMOUNTAIN

SUMMITPARK


REACH 11RECREATION

AREA

PAPAGOPARK

ENCANTOPARK

CAVECREEKPARK

NORTHMOUNTAIN

PARK

PHOENIXMOUNTAINS

PRESERVE

MOUNTAINVIEWPARK

WASHINGTONPARK

ESTEBANPARK

SOUTHMOUNTAIN PARK

SOUTHMOUNTAIN PARK



CONOCIDOPARK


THUNDERBIRDPARK




LOSTDUTCHMAN

STATEPARK

PARADISEVALLEYPARK

SERENOPARK


RECREATION AREA


SUENOPARK


PARK

CROSSROADSPARK

FREESTONEPARK

WATERPARK

HARMONYPARK

REEDPARK

HERITAGEPARK

SHERWOODPARK

HOHOKAMPARK


MONUMENT

NUEVEPARK

CIRCLE-KPARK

DESERTFOOTHILLS

PARK

CACTUSPARK

CORTEZPARK

EL OSOPARK


MONUMENT


MONUMENT

RIO SALADOPARK

MOERPARK

KIWANASPARK

SWEETWATERPARK

ROADRUNNER

PARK

SWEETWATERPARK

BUFFALORIDGEPARK

GRANADAPARK

LOSOLIVOS

PARK

LAKEPLEASANT PARK

HORSEMANSPARK

HORIZONPARK

CESARCHAVEZ PARK

SAGUARORANCHPARK

DEERVALLEYPARK

MCCORMICKPARK

GAINEYRANCH

GOLF CLUB

MCCORMICRANCH

GOLF CLUB

SILVERRADOGOLF CLUB

VILLAMONTEREY

GOLFCOURSE

CONTINENTALGOLF

COURSE

CORONADOGOLF

COURSE

RIOSALADO

GOLFCOURSE

KARSTENGOLF COURSE




CLUB

TALKINGSTICK

GOLF CLUB

PAPAGOMUNICIPAL

GOLFCOURSE

DESERTTRAILSGOLF

COURSE

TRAILRIDGEGOLF

COURSE

GRANDVIEWGOLF

COURSE

ECHO MESAGOLF

COURSEHILLCREST

GOLFCOURSE

BRIARWOODCOUNTRY

CLUB

STARDUSTGOLF

COURSE

IRONWOODGOLF

COURSE

AUGUSTARANCH

GOLF CLUB





TOKASTICKSGOLF

COURSE

SUNLANDVILLAGE

EASTGOLF

COURSE

ARIZONAGOLF

RESORT

LEISUREWORLD

COUNTRYCLUB

SUPERSTITIONSPRINGS

GOLF CLUB

FOUNTAINOF THE SUN

GOLF COURSE



RED MOUNTAINRANCH

COUNTRY CLUB


SUNLANDVILLAGE

GOLFCLUB

ALTAMESA

COUNTRYCLUB


LOGBOWGOLF CLUB

WESTERNSKIESGOLF

COURSE

GOLF CLUBAT EAGLE

MOUNTAIN

DESERT CANYON

GOLF CLUB

SUNRIDGECANYON

GOLF CLUB


RENEGADEGOLF COURSE

THEBOULDERS


RANCHOMANANA

GOLF CLUB


DOVE VALLEYRANCH

GOLF CLUB



TROONGOLF AND

COUNTRY CLUB


ESTANCIACLUB


PINNACLEPEAK

COUNTRYCLUB

GRAYHAWK GOLF CLUB


ANCALACOUNRTY

CLUB

TPC STADIUMCOURSE

TPC DESERTCOURSE


COUNTRY CLUB

MESACOUNTRY

CLUB

ROYALPALMSGOLF

COURSE


DOBSONRANCHGOLF


KENMCDONALD

GOLFCOURSE

SANMARCOSRESORT

OCOTILLOGOLF

RESORT

OAKWOODGOLF COURSE

PALOVERDE

COUNTRYCLUB

SUN LAKESCOUNTRY

CLUB


KIERLANDGOLFCLUB

ORANGETREEGOLF

RESORT


CAMELBACKGOLF CLUB

PARADISEVALLEY

COUNTRYCLUB

PHOENICIANGOLF CLUB

ARIZONACOUNTRY

CLUB

ARIZONABILTMORE

GOLFCOURSE

MOONVALLEY

COUNTRYCLUB


ELCAROGOLFCLUB

PHOENIXCOUNTRY

CLUB



FOOTHILLSGOLF CLUB

MARYVALEGOLF

COURSE


LEGANDS ATARROWHEAD

GOLFCOURSE

ARROWHEADCOUNTRY

CLUB

VISTASCLUB AT

WESTBROOKVILLAGE

WESTBROOKVILLAGE

GOLF COURSE

UNIONHILLS

COUNTRYCLUB

WILLOWCREEKGOLF

COURSE


PALMBROOKCOUNTRY

CLUB



SUN CITYSOUTH

GOLF COURSE

QUAILRUNGOLF

COURSE

SUNCITY

COUNTRYCLUB

COUNTRYMEADOWS

GOLFCOURSE

VILLADE PAZGOLF

COURSE

WIGWAMGOLF AND

COUNTRY CLUB




CLUB

COYOTELAKESGOLF

COURSE


DESERTSPRINGS

GOLFCLUB

PEBBLEBROOKGOLF

COURSE

SUNVILLAGEGOLF

COURSE

ARIZONATRADITIONS

GOLFCOURSE

HAPPYTRAILSGOLFCLUB

ROLLINGHILLS GOLF

COURSE


AT WESTWORLD

TONTOVERDEGOLF

COURSE


PAVILLIONLAKESGOLF

COURSE

CYPRESSGOLF

COURSE

GREENFIELDLAKESGOLF

COURSE

AHWATUKEECOUNTRY

CLUB

VISTALGOLF CLUB




POWER RANCH


WHIRLWINDGOLF CLUB


MOUNTAIN


CAVECREEKGOLF

COURSE

ENCANTOGOLF

COURSE

AGUILA GOLFCOURSE


BELLAIRGOLF

COURSE

FALCONGOLF

COURSE




LOSCABALLEROS

GOLFCLUB

WICKENBURGCOUNTRY

CLUB

DESERTMIRAGE

GOLFCOURSE

GLENLAKESGOLF

COURSE


CENTER


SHADOWS RESORT

SPRINGFIELDGOLF

COURSE

SUNBIRDCOUNTRY

CLUB

SALT RIVERINDIAN

RESERVATION







143

153101

101

202

202

202

17

17

17

101

101

101

17

202202

101

101

74

74

74

303

303

303

85

85

85

93

347

347

87

87

87

587

188

188

188

87

87

87

79

79

E MAIN ST

S M

CQ

UE

EN

RD


W HAPPY VALLEY RD

N 2

11T

H A

VE

S 2

03

RD

AV

E

S 9

9T

H A

VE

S 1

55

TH

AV

E

S 1

39

TH

AV

E

S R

AIN

BO

W V

ALL

EY

RD

N N

EW R

IVER

RD

W INDIAN SCHOOL RD

W CAMELBACK RD

W THOMAS RD

E CAMELBACK RD

W VAN BUREN ST

W YUMA RD

W INDIAN SCHOOL RD

E THOMAS RD

N BEELINE HWY

W BELOAT RD

W SOUTHERN AVE


N P

IMA

RD

W VAN BUREN ST

S P

RIE

ST

DR

S M

ILL

AV

E

E APACHE BLVD

N M

ES

A D

R

W OLD WEST HWY

W BUCKEYE RD

W LOWER BUCKEYE RD

S 7

TH

AV

E

E UNIVERSITY DR

S 5

2N

D S

T

W JEFFERSON ST

E ROOSEVELT ST

N 7

TH

AV

E

N C

EN

TR

AL

AV

ES

CE

NT

RA

L A

VE

S 7

TH

ST

N 7

TH

ST

W HAPPY VALLEY RD

S 6

7T

H A

VE

N 7

5T

H A

VE

N 9

1ST

AV

E

N 1

11T

H A

VE

AV

ON

DA

LE B

LVD

N L

ITC

HF

IELD

RD

N E

L M

IRA

GE

RD

N R

EE

MS

RD

W GLENDALE AVE

N 2

4T

H S

T

N 4

4T

H S

T

N 3

2N

D S

T

S 2

4T

H S

T

S 1

9T

H A

VE

N 1

9T

H A

VE

W GRAN

D AVE

W GRAND AVE

E MCDONALD DR

INDIAN BEND RD

W SUPERSTITION BLVD

W BETHANY HOME RD

E LINCOLN DR

N T

AT

UM

BLV

D

N 5

1ST

AV

E


N S

CH

NE

PT

RD


S R

UR

AL

RD

N S

CO

TT

SD

ALE

RD

N S

CO

TT

SD

ALE

RD


S A

RIZ

ON

A A

VE

W RAY RD

W CHANDLER BLVD




E WILLIAMS FIELD RD

S D

OB

SO

N R

D

S M

CC

LIN

TO

CK

DR

N H

AY

DE

N R

D

E CACTUS RD

E MAYO BLVD


W GUADALUPE RD

W ELLIOT RD

E BELL RD

W UNION HILLS DR

W BEARDSLEY RD

E PINNACLE PEAK RD

E DYNAMITE BLVD

E LONE MOUNTAIN RD

E C

AV

E C

REE

K R

D

W BELL RD

E GREENWAY PKWY

N P

IMA

RD


N 5

6TH

ST

N 1

6TH

ST

S A

LMA

SC

HO

OL

RD

N A

LMA

SC

HO

OL

RD

S C

OO

PE

R R

D

S V

AL

VIS

TA D

R

S G

RE

EN

FIE

LD R

D

S P

OW

ER

RO

AD

S S

OS

SA

MA

N R

OA

D

S E

LLS

WO

RT

H R

D

N M

ER

IDIA

N R

OA

D

S I

RO

NW

OO

D D

RIV

E

N Q

UA

IL R

D L

N

E SKYLINE DR

S C

OO

PE

R R

D

N 3

5T

H A

VE

S 3

5T

H A

VE

N 4

3R

D A

VE

W DOBBINS RD

BROWN RD

N APA

CHE TRAIL

E MCKELLIPS ROAD

E PECOS RD

W OLIVE RD

W CACTUS RD

SU

N V

ALL

EY

PK

WY

W DOVE VALLEY RD

N C

RIM

SO

N R

D

N 5

9T

H A

VE

S E

ST

RE

LLA

PK

WY


W DIXILETA PKWY

N 1

63

RD

AV

E

N L

AK

E P

LEA

SAN

T P

KW

Y

W CAREFREE HWY

E CAREFREE HWY

N 6

7T

H A

VE

W DOVE VALLEY RD

W JOMAX RD

W PATTON RD

W JOMAX RD

W CAREFREE HWY

W BELL RD

W PEORIA AVE

S 5

1ST

AV

E

W BASELINE RD

N E

ST

RE

LLA

FW

Y

N C

ITR

US

RD

S C

OT

TO

N L

N

S L

ITC

HF

IELD

RD

S J

AC

KR

AB

BIT

TR

SUN VALLEY PKWY

N 1

6TH

ST

E JOMAX RD

E SHEA BLVD

W ANTHEM

WAY

N 7

TH

AV

E

N 7

TH

ST

E JOY RANCH RD

E CLOUD RD

W BUCKEYE RD

S 3

39

TH

AV

E

W BROADWAY RD


S J

OH

NS

ON

RD

S P

ALO

VE

RD

E R

D

W YUMA RD


S A

RLI

NG

TO

N S

CH

OO

L R

D

W GASLINE RD

EN

TER

PRISE

RD

W PATTERSON RD

W HAZEN RD

S T

UR

NE

R R

D

S 3

51ST

AV

E

N T

UR

NE

R R

D

N 3

07

TH

AV

E

N 3

31S

T A

VE

N 2

93

RD

AV

E

N 3

39

TH

AV

E

N 2

43

RD

AV

E

N 2

59

TH

AV

E

N 2

19T

H A

VE

E NORTHERN AVE

S M

ILLE

R R

D

S W

AT

SO

N R

D

S A

IRP

OR

T R

D

POW

ER LINE RD

N 1

07

TH

AV

E

N 9

1ST

AV

E

W ESTRELLA DR

W PECOS RD

E SOUTHERN AVE

E BASELINE RD

N G

ILB

ER

T R

D

N V

AL

VIS

TA D

R

N H

IGLE

Y R

DS

HIG

LEY

RD

E GERMANN RD

W OCOTILLO RD

W GERMANN RD

W ELLIOT RD

W WILLIAMS FIELD RD

W RIGGS RD

E OCOTILO RD


N P

OW

ER

RO

AD

S L

IND

SA

Y R

D

S S

IGN

AL

BU

TT

E R

OA

D

S R

EC

KE

R R

D

E JUDD RD

E BELLA VISTA RD

E ROBERTS RD

E HU

NT H

WY

E ARIZONA FARMS RD

E A

TTA

WA

Y R

D

E PECOS RD

E EMPIRE BLVD

E T

HO

MP

SO

N R

D

E G

AR

Y R

D

N S

IER

RA

VIS

TA D

R

N BUSH HWY

N B

USH

HW

Y

N F

OR

T M

CD

OW

ELL

RD

N M

CD

OW

ELL

MT

N R

D

E RIO VERDE DR

N 1

18T

H S

T

N 1

36T

H S

T

N 1

44

TH

ST

E DIXILETA DR

N 1

68

TH

ST

E OCOTILLO RD

PAPAGOPARK

PHOENIXMOUNTAINS

PRESERVE

SOUTHMOUNTAIN PARK


RECREATION AREA

ASUWEST

SCOTTSDALECOMMUNITY

COLLEGE


RED MTN

PARADISEVALLEY

COMMUNITYCOLLEGE


GLENDALECOMMUNITY

COLLEGE

ESTRELLAMOUNTAIN

COMMUNITYCOLLEGE

GRANDCANYON

UNIVERSITY

PHOENIXCOLLEGE

SOUTH MTNCOMMUNITY

COLLEGE

ARIZONASTATE

UNIVERSITY

GATEWAYCOMMUNITY

COLLEGE


OF GLOBAL MGMT

BARTLETTRESERVOIR

LAKEPLEASANT

CANYONLAKE

APACHELAKE

THEODOREROOSEVELT

LAKE

SAGUARORESERVOIR

LUKEAIR FORCE


AIRPORT

CHANDLERMUNICIPAL

AIRPORT


FALCONFIELD

AIRPORT

SCOTTSDALEAIRPORT

PHOENIXDEER VALLEY

AIRPORT

PHOENIXSKY HARBOR

INT’L AIRPORT

PHOENIXGOODYEAR

AIRPORT

STELLARAIRPARK

BUCKEYEMUNICIPAL

AIRPORT

PEORIA

GLENDALE

SUN CITY WEST

SUNCITY

WADDELL

PHOENIX

LAVEEN

AVONDALE

BUCKEYE

PALOVERDE

CAVECREEK

CAREFREE

ANTHEM

PARADISEVALLEY

SCOTTSDALE

TEMPE

MESA

GILBERT

CHANDLER

HIGLEY

APACHEJUNCTION

SAN TANVALLEY

SUNLAKES

QUEENCREEK

NEWRIVER

FOUNTAINHILLS

MIRASOL

1

5

3

4 2


24 Market oVerVieW

Rent Comparables - Subject Property

Mirasol

ProPerty details

survey date June 2011address 8750 e McDowell rd

scottsdale, aZ 85257units 125total sf 87,674oCCupanCy 94%year Built 1970stories 2Metering individual

CoMMoN area aMeNities

CluBhouse n laundry faCility y swiMMing pool yBusiness Center n BarBeCue grills y spa yfitness Center n playground y tennis Court nControlled aCCess n garages n BasketBall Court nseCurity patrol y Covered parking n raCquetBall Court nrental offiCe y parking spaCes 250 volleyBall Court n

iNterior aMeNities

storage some dishwasher y MiCrowave npatio/BalCony n disposal y washer/dryer nCeiling fans y frost free fridge y w/d hook-ups nwalk-in Closets some iCe Maker n fireplaCe n

aPartMeNt uNit Mix



s/1 Bath 1 310 310 $500 $1.61 $445 $1.44

1 B/1 B 44 550 24,200 $615 $1.12 $547 $1.00

1 B/1 B 6 590 3,540 $630 $1.07 $561 $0.95

2 B/1 B 48 780 37,440 $709 $0.91 $631 $0.81

2 B/2 B 24 830 19,920 $749 $0.90 $667 $0.80

3 B/2 B 2 1132 2,264 $799 $0.71 $711 $0.63

Total/Avg 125 701 87,674 $676 0.96 $601 $0.86

Marasol apartMents

Market oVerVieW 25

Scottsdale Springs

ProPerty details

survey date June 2011address 7791 e osborn rd

scottsdale, aZ 85251units 644total sf 504,000oCCupanCy 90%year Built 1979stories 1 and 2Metering individual


CluBhouse y laundry faCility y swiMMing pool yBusiness Center n BarBeCue grills y spa nfitness Center y playground n tennis Court yControlled aCCess y garages n BasketBall Court nseCurity patrol n Covered parking y raCquetBall Court nrental offiCe y parking spaCes 986 volleyBall Court n

iNterior aMeNities

storage y dishwasher y MiCrowave ypatio/BalCony n disposal y washer/dryer someCeiling fans y frost free fridge y w/d hook-ups nwalk-in Closets some iCe Maker n fireplaCe n

aPartMeNt uNit Mix



1 B/1 B 352 680 239,360 $770 $1.13 $575 $0.85

2 B/1 B 128 816 104,448 $855 $1.05 $665 $0.81

2 B/2 B 136 910 123,760 $915 $1.01 $725 $0.80

3 B/2 B 16 1194 19,104 $1,205 $1.01 $1,205 $1.01

3 B/2 B 12 1,444 17,328 $1,315 $0.91 $990 $0.69

Total/Avg 644 783 504,000 $838 $1.07 $648 $0.83

Rent Comparables


26 Market oVerVieW

Rent Comparables

Scottsdale Belle Rive

ProPerty details


scottsdale, aZ 85257units 160total sf 138,100oCCupanCy 95%year Built 1985stories 1 and 2Metering individual


CluBhouse n laundry faCility y swiMMing pool yBusiness Center n BarBeCue grills y spa nfitness Center n playground n tennis Court yControlled aCCess n garages n BasketBall Court nseCurity patrol y Covered parking y raCquetBall Court nrental offiCe y parking spaCes 220 volleyBall Court y

iNterior aMeNities

storage some dishwasher y MiCrowave somepatio/BalCony n disposal y washer/dryer yCeiling fans some frost free fridge y w/d hook-ups nwalk-in Closets y iCe Maker n fireplaCe n

aPartMeNt uNit Mix



s/1 B 12 450 5,400 $625 $1.39 $574 $1.28

1 B/1 B 45 750 33,750 $745 $0.99 $685 $0.91

2 B/1 B 27 850 22,950 $805 $0.95 $730 $0.86

2 B/2 B 76 1000 76,000 $835 $0.84 $728 $0.73

Total/Avg 160 863 138,100 $789 $0.91 $705 $0.82

Marasol apartMents

Market oVerVieW 27

Rent Comparables

Scottsdale Gateway I & II

ProPerty details

survey date June 2011address 2100 n scottsdale rd

tempe, aZ 85281units 610total sf 387,807oCCupanCy 98%year Built 1965/1972stories 2Metering individual


CluBhouse n laundry faCility y swiMMing pool yBusiness Center n BarBeCue grills y spa nfitness Center n playground y tennis Court nControlled aCCess n garages n BasketBall Court nseCurity patrol y Covered parking n raCquetBall Court nrental offiCe y parking spaCes 203 volleyBall Court n

iNterior aMeNities

storage n dishwasher y MiCrowave npatio/BalCony some disposal y washer/dryer yCeiling fans y frost free fridge y w/d hook-ups nwalk-in Closets y iCe Maker n fireplaCe n

aPartMeNt uNit Mix



s/1 B 56 308 17,248 $578 $1.88 $578 $1.88

s/1 B 77 411 31,647 $581 $1.41 $581 $1.41

1 B/1 B 104 458 47,632 $639 $1.40 $639 $1.40

1 B/1 B 104 605 62,920 $699 $1.16 $699 $1.16

1 B/1 B/Den 28 750 21,000 $764 $1.02 $764 $1.02

2 B/1 B 64 750 48,000 $764 $1.02 $764 $1.02

2 B/1 B 123 850 104,550 $764 $0.90 $764 $0.90

2 B/1.5 B 18 1,223 22,014 $957 $0.78 $957 $0.78

2 B/2 B 36 911 32,796 $864 $0.95 $864 $0.95

Total/Avg 610 636 387,807 $703 $1.11 $703 $1.11


28 Market oVerVieW

Rent Comparables

Summertree

ProPerty details

survey date June 2011address 1923 n 70th st

scottsdale, aZ 85257units 193total sf 124,287oCCupanCy 124,287year Built 1963stories 2Metering individual


CluBhouse n laundry faCility y swiMMing pool yBusiness Center n BarBeCue grills y spa nfitness Center n playground n tennis Court yControlled aCCess n garages n BasketBall Court nseCurity patrol y Covered parking n raCquetBall Court nrental offiCe y parking spaCes 285 volleyBall Court n

iNterior aMeNities

storage some dishwasher y MiCrowave npatio/BalCony some disposal y washer/dryer nCeiling fans y frost free fridge some w/d hook-ups nwalk-in Closets n iCe Maker n fireplaCe n

aPartMeNt uNit Mix



s/1 B 21 475 9,975 $529 $1.11 $504 $1.06

1 B/1 B 72 496 35,712 $599 $1.21 $554 $1.12

1 B/1 B 20 610 12,200 $605 $0.99 $580 $0.95

2 B/2 B 80 830 66,400 $693 $0.83 $668 $0.80

Total/Avg 193 644 124,287 $631 $0.98 $599 $0.93

Marasol apartMents

Market oVerVieW 29

Rent Comparables

Irvine Park

ProPerty details


scottsdale, aZ 85257units 120total sf 106,880oCCupanCy 95%year Built 1983stories 2Metering individual


CluBhouse n laundry faCility y swiMMing pool yBusiness Center n BarBeCue grills y spa yfitness Center n playground n tennis Court yControlled aCCess n garages n BasketBall Court yseCurity patrol n Covered parking y raCquetBall Court nrental offiCe y parking spaCes 250 volleyBall Court n

iNterior aMeNities

storage y dishwasher y MiCrowave npatio/BalCony y disposal y washer/dryer nCeiling fans y frost free fridge y w/d hook-ups ywalk-in Closets y iCe Maker n fireplaCe n

aPartMeNt uNit Mix



1 B/1 B 40 704 28,160 $685 $0.97 $625 $0.89

2 B/2 B 80 984 78,720 $795 $0.81 $725 $0.74

Total/Avg 120 891 106,880 $758 $0.85 $692 $0.78


30 MarketinG teaM

Jack Hannum

Vice president [email protected]

TRANSWESTERN ROLEas vice president in transwestern’s phoenix investment services group, Jack specializes in the disposition of large multifamily properties and portfolios for both private and institutional clients.

CAREER HIGHLIGHTS prior to joining transwestern, Jack served as senior vice president and lead financial analyst with CB richard ellis’s multifamily team led by tyler anderson and sean Cunningham. his strong background in finance and client-focused approach helped his team close over 260 transactions involving 83,000 units with a total value of $7.4 billion. Jack began his career in 1998 with CBre in its financial Consulting group before joining the anderson/Cunningham team in 2001.

previously, Jack worked with l.J. Melody & Company, the mortgage-banking arm of CB richard ellis. in addition, Jack served as a member of the u.s. navy on uss princeton (Cg-59) and participated in operation desert storm.

PROFESSIONAL AFFILIATIONS Jack is an active member of the following organizations:nnational Multi-Housing councilnarizona Multifamily associationnBoard of trustees member: tesseract school

EdUCATION ANd CREdENTIALSJack earned his bachelor’s degree magna cum laude in business administration and finance at California state university, northridge. he is a licensed real estate professional in the state of arizona.

Marasol apartMents

MarketinG teaM 31

Bret Zinn

Vice president [email protected]

TRANSWESTERN ROLEas a vice president with transwestern’s investment services group, Bret provides transaction-related investment services to multifamily clients throughout the phoenix area. together, the team markets investment-grade multifamily opportunities to maximize value and exceed client objectives.

CAREER HIGHLIGHTS Bret is a 15-year veteran of the apartment brokerage industry. prior to joining transwestern, Bret was vice president with apartment realty advisors where he specialized in the disposition of multifamily properties throughout arizona. during his time with ara he brokered over 10,000 units with a total sales volume of more than $850 million. his background includes real estate financing, development, and research with a sole focus on multifamily properties.

PROFESSIONAL AFFILIATIONS Bret is an active member of the following organization:nnational Multi-Housing councilnarizona Multifamily association

EdUCATION ANd CREdENTIALSBret received his bachelor’s degree in regional development from the university of arizona. he is a licensed real estate professional in the state of arizona.


32 contents

T 602.956.5000 F 602.956.5333www.transwestern.net

2415 East Camelback Road, Suite 900Phoenix, Arizona 85016

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